TSX Recovers From Day's Lows, But Still Ends 1.1% Down

(RTTNews) - The Canadian market suffered a severe setback in early trades on Monday following a big sell-off as U.S. President Donald Trump slapped a 25% import tariff on all Canadian goods except energy products.

However, Stocks recovered from early lows after Trump decided to pause tariffs on Mexico for a month after Mexican President held talks with him. Still, the Canadian benchmark ended the day's session on a weak note

Trump imposed a 10% levy on Canadian energy products, and

After US President Donald Trump signed an executive order imposing tariffs on almost everything imported from Canada, outgoing Canadian Prime Minister Justin Trudeau said Canada would respond in kind and impose 25% tariffs on more than $105 billion of U.S. goods.

The U.S. President has warned that the EU and the UK could be the next targets for the levy. The imposition on Mexico has now been postponed by a month following Trump's talks with the Mexican President. The EU also warned of firm retaliation if targeted.

The benchmark S&P/TSX Composite Index, which plunged nearly 800 points to 24,742.92 in early trades, ended the day's session with a loss of 291.34 points or 1.14% at 25,241.76.

Industrials, healthcare, financials, consumer discretionary and financials shares were among the major losers. Materials stocks found some support as metal prices moved up a bit.

Goeasy (GSY.TO) and BRP Inc (DOO.TO) lost 8.3% and 7.8%, respectively. Magna International (MG.TO), Cargojet (CJT.TO), Canadian Pacific Kansas City (CP.TO), Canadian National Railway (CNR.TO), Linamar Corporation (LNR.TO), Canadian Imperial Bank of Commerce (CM.TO), CCL Industries (CCL.TO), Precision Drilling Corporation (PD.TO) and Bombardier Inc (BBD.A.TO) lost 4 to 6.2%.

Richelieu Hardware (RCH.TO), Cameco Corporation (CCO.TO), Rogers Communications (RCI.A.TO), EQB Inc (EQB.TO), TFI International (TFII.TO), MTY Food Group (MTY.TO), Stantec (STN.TO), Premium Brands Holdings (PBH.TO), Bank of Nova Scotia (BNS.TO), Teck Resources (TECK.A.TO), West Fraser Timber (WFG.TO) and Royal Bank of Canada (RY.TO) closed down 2 to 4%.

Equinox Gold Corp (EQX.TO) climbed 8.7%. Aura Minerals (ORA.TO) rallied 6.5%. Iamgold Corp (IMG.TO), Pan American Silver Corp (PAAS.TO), Wesdome Gold Mines (WDO.TO), Alamos Gold Inc (AGI.TO), Agnico Eagle Mines (AEM.TO), Kinaxis Inc (KXS.TO), Dundee Precious Metals (DPM.TO), Seabridge Gold (SEA.TO), Lundin Gold (LUG.TO), Waste Connections (WCN.TO) and Wheaton Precious Metals (WPM.TO) also moved up sharply.

On the economic front, a report from S&P Global said, the S&P Global Canada Manufacturing PMI fell to 51.6 in January, down from 52.2 a month earlier, signaling a slower expansion. The reading dropped for a fifth straight month.